November 17, 2003	Monday	Ramazan 21, 1424

Prices of essential items on the Karachi wholesale markets showed a modest softening last week as pre-Ramazan buying spree was not visible on any of the counters. Trading was light amid falling ready demand.

Apart from steady arrivals from the upcountry markets, a substantial rise in release of stocks by the local commercial houses also halted any further increase in prices of essential commodities, dealers said.

After remaining static for the last couple of weeks, sugar prices fell by Rs45 to Rs50 per bag followed by reports that new crushing season will start from Nov 15.

Fears of steady new crop arrivals both from Sindh and Punjab where some of the leading mills have already resumed crushing, prompted selling from the local commercial houses, pushing prices lower.

But on the other hand the situation on the wheat front was not clear as prices rose further by Rs15, showing a pressure on ready supplies despite official claims of a comfortable position, dealers said.

The market decline was led by the pulses sector, which remained under pressure throughout the week partly because of oversupply and partly to slack demand from the general consumers, they added.

Among the other major essential items, wheat posted a fresh modest rise of Rs15 per bag as supply position improved after the government released more stocks of the commodity to the mills. However, prices of flour rose at the retail level.

On the sugar front, prices declined on dealers selling despite reports that the Trading Corporation of Pakistan (TCP) has floated a tender to buy 0.1m tons of the commodity from the mills holding unsold stock of half a million tons from the previous crop.

The central bank as already allocated an amount of Rs4bn for the TCP to purchase the commodity from the sugar mills so that they clear the dues of growers from the previous crop.

Although the government has directed the sugar mills to resume the new crushing season from Nov 15, indications are that the official deadline may not be met as some of the mills are reluctant to comply with the official directive for various reasons, market sources fear.

On the other essential counters, prices of pulses remained under pressure because of slack demand. Prices of gram dal, urad, peas, beetle and some other varieties suffered fall ranging from Rs5 to Rs75, while all other types were traded at the last levels.

Guar also suffered modest fall on selling followed by reports of steady new crop arrivals from the Sindh markets.

Rice prices showed a little change and were quoted the previous levels as new crop arrivals from the Sindh markets were said to be on the higher side. There was, however, a relative quiet on the export front.

Basmati, kernel variety came in for active selling and suffered a fall of Rs100 per bag followed by reports of fall in export demand, while sela variety was traded at the previous level and so did basmati varieties. Irri broken was an exception, which fell by Rs5.

On the sugar counter, desi sugar was traded at the last levels, while gur came in for renewed selling followed by reports of steady new crop arrivals and was marked down by Rs200 per bag.

Cereals showed steady trend as prices of bajra rose by Rs20 to Rs25, while maize was firmly held at the last level. Jowar suffered fresh decline followed by reports of larger new crop arrivals. Barley followed them in the absence of export demand.

Oilseed sector turned mixed. Barring castorseed, which rose by Rs25, all other major seeds including rapeseed, cottonseed were traded at the previous levels.

After ruling unchanged for the last couple of weeks, til came in for active support followed by reports of revival of export demand and rose by Rs100.

Oilcakes showed steady trend as cottonseed cakes rose by Rs2 to Rs5 rapeseed cakes were firmly held at the last levels amid slow trading.—MA